What costs related to a securities offering must I reimburse Buns On Fire for?

Question

Accepted Answer

|                                      |                                                                                                                                                                                                                                                                                                                                        |                                                 | between 1% and 2% of Gross Revenue.                                                                                                                                                                                                        |
|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Insurance | Cost of procuring insurance for you. | If incurred. | If you do not provide proof of insurance for your Franchise Business, we may procure it on your behalf and charge you the cost of procuring this insurance, including an administrative fee of \$2,500 payable to us. |
| Transfer Fee | 50% of the then current initial franchise fee. | Prior to consummation of the transfer. | Payable if you sell your franchise. |
| Audit Fee | Cost of the audit if we discover you have under reported by more than 5%. | Upon demand. |  |
| Interest on Late Payments | A late fee of not less than \$30 per day while an amount is overdue. | Upon demand. | Payable on all overdue amounts. |
| Additional Onsite Training | Our then-current additional training fee (currently \$25 per hour per instructor if at BoF Buffalo Grove or BoF Glendale Heights or \$45 per hour per instructor at your Buns on Fire Restaurant) plus our expenses (including travel/airfare and hotel expenses if at your Buns on Fire Restaurant). | When required | Additional periodic refresher or supplemental training as required by the Franchise Agreement (and franchisee performance) |
| Renewal Fee | 25% of the then current | Prior to execution of the | Payable if you renew your |
|  | initial franchise fee. | renewal documents. | franchise. |
| Prohibited Product or Service Fee | \$250 per day of use of unauthorized products or services. | If incurred. | In addition to other remedies available to us. |
| Costs and Attorneys' Fees | Will vary under circumstances | Upon request. | If you default under a franchise or Area Development Agreement, you must reimburse us for the expenses we incur (such as attorneys' fees) in enforcing and/or terminating the agreement. |
| Securities Offering | Will vary under circumstances | Upon request | If you propose to make an offering of any securities, you must reimburse us for our reasonable costs (including attorneys' fees and accounting fees) in |
| Indemnification                           | Will vary under circumstances                                                                                                                                                                                | Upon request                        | offering.  You must reimburse us for the costs we incur if we are sued or held liable for claims that arise from your operation of the Franchise Business or in connection with any offer of your securities, or for costs associated with defending claims that you used the trademarks in an unauthorized manner. |

Source: Item 6 — OTHER FEES (FDD pages 12–16)

What costs related to a securities offering must I reimburse Buns On Fire for?

Answer from 2025 FDD Document

What This Means (2025 FDD)

			between 1% and 2% of Gross Revenue.
Insurance	Cost of procuring insurance for you.	If incurred.	If you do not provide proof of insurance for your Franchise Business, we may procure it on your behalf and charge you the cost of procuring this insurance, including an administrative fee of $2,500 payable to us.
Transfer Fee	50% of the then current initial franchise fee.	Prior to consummation of the transfer.	Payable if you sell your franchise.
Audit Fee	Cost of the audit if we discover you have under reported by more than 5%.	Upon demand.
Interest on Late Payments	A late fee of not less than $30 per day while an amount is overdue.	Upon demand.	Payable on all overdue amounts.
Additional Onsite Training	Our then-current additional training fee (currently $25 per hour per instructor if at BoF Buffalo Grove or BoF Glendale Heights or $45 per hour per instructor at your Buns on Fire Restaurant) plus our expenses (including travel/airfare and hotel expenses if at your Buns on Fire Restaurant).	When required	Additional periodic refresher or supplemental training as required by the Franchise Agreement (and franchisee performance)
Renewal Fee	25% of the then current	Prior to execution of the	Payable if you renew your
	initial franchise fee.	renewal documents.	franchise.
Prohibited Product or Service Fee	$250 per day of use of unauthorized products or services.	If incurred.	In addition to other remedies available to us.
Costs and Attorneys' Fees	Will vary under circumstances	Upon request.	If you default under a franchise or Area Development Agreement, you must reimburse us for the expenses we incur (such as attorneys' fees) in enforcing and/or terminating the agreement.
Securities Offering	Will vary under circumstances	Upon request	If you propose to make an offering of any securities, you must reimburse us for our reasonable costs (including attorneys' fees and accounting fees) in
Indemnification	Will vary under circumstances	Upon request	offering. You must reimburse us for the costs we incur if we are sued or held liable for claims that arise from your operation of the Franchise Business or in connection with any offer of your securities, or for costs associated with defending claims that you used the trademarks in an unauthorized manner.